CORPORATE RESPONSIBILITY
REPORT
Build. Connect. Power. Protect. Services. Worldwide.
Table of Contents Statement of Support
3
The Ten Principles of the United Nations Global Compact
4
Human Rights
5
Labor
7
Global Sustainability
12
Environmental Product Compliance
24
Health, Safety and Security
27
Quality Management Systems
30
Charitable and Social Responsibility Programs
32
Anti-Corruption
36
About Anixter
42
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Statement of Support To Our Stakeholders, I am pleased to reaffirm Anixter’s ongoing support of the Ten Principles of the United Nations Global Compact and their integration into our business. Since joining the Global Compact in January 2012, Anixter continues to successfully maintain its GC Active status and highlight the ongoing organizational accomplishments attained within the areas of human rights, labor, environment and anti-corruption in our annual Corporate Responsibility Reports. This marks the eighth consecutive year of submitting our Corporate Responsibility Report to the United Nations Global Compact, the third consecutive year highlighting our three UN Sustainable Development Goals and the second consecutive year as a Signatory to the Global Compact. Our Blue Book states, “We are often pleased, but never satisfied.” As we seek continuous improvement in all that we do, we remain committed to implementing organizational improvements that will make a difference.
Bill Galvin President and Chief Executive Officer
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The Ten Principles of the United Nations Global Compact The contents of this report detail how Anixter has incorporated the Ten Principles of the United Nations Global Compact into its strategies, policies and procedures. The Ten Principles are as follows:
HUMAN RIGHTS PRINCIPLE 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
LABOR PRINCIPLE 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
PRINCIPLE 2: make sure that they are not complicit in human rights abuses.
PRINCIPLE 4: the elimination of all forms of forced and compulsory labor; PRINCIPLE 5: the effective abolition of child labor; and PRINCIPLE 6: the elimination of discrimination in respect of employment and occupation.
ENVIRONMENT PRINCIPLE 7: Businesses should support a precautionary approach to environmental challenges; PRINCIPLE 8: undertake initiatives to promote greater environmental responsibility; and PRINCIPLE 9: encourage the development and diffusion of environmentally friendly technologies. ANTI-CORRUPTION PRINCIPLE 10: Businesses should work against corruption in all its forms, including extortion and bribery.
SUSTAINABLE DEVELOPMENT GOALS The United Nations has set forth 17 Sustainable Development Goals. According to the UN, the goals are “a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.” While Anixter’s corporate and charitable initiatives apply to several of the Sustainable Development Goals, throughout this report, you will notice the company has chosen to focus its corporate responsibility efforts on three in particular:
#3 GOOD HEALTH AND WELL-BEING
#4 QUALITY EDUCATION
#11 SUSTAINABLE CITIES AND COMMUNITIES
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HUMAN RIGHTS
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HUMAN RIGHTS Anixter is committed to the fair and ethical treatment of people within its organization and throughout the world. With company policies that clearly state a commitment to human rights and efforts undertaken to strive toward conflict-free supply chains, Anixter complies with applicable employment laws and regulations around the globe and does not tolerate human rights violations or discrimination of any kind. HUMAN RIGHTS PROTECTION
TOWARD CONFLICT-FREE SUPPLY CHAINS
Anixter upholds human rights based on its policies and regular management reviews combined with regularly engaging with peers and experts in the field. The following is a list of related policies and programs that support these ongoing efforts:
• Anixter supports industrywide efforts to identify, reduce and eliminate the use of conflict minerals that originate from the Democratic Republic of the Congo and surrounding countries, which are believed to be financing groups that are responsible for human rights violations.
• Global Human Rights Principles • Global Business Ethics and Conduct Policy • Equal Employment Opportunity Policy • Conflict Minerals Policy Statement • Anti-Harassment Policy • Anti-Retaliation Policy • Workplace Violence and Response Policy • Policy on Confidentiality • Privacy Policy • Global Health and Safety Policy • Non-discrimination in employment and personnel practices • Comprehensive health and welfare benefit programs • Business Integrity Line and other communication mechanisms.
• Anixter is committed to fully complying with the conflict minerals requirements included in the U.S. Securities and Exchange Commission’s (SEC) Dodd-Frank Act, which requires publicly traded companies to perform due diligence as to the existence and source of conflict minerals in their supply chains. Anixter successfully filed its Form SD and Conflict Minerals Report with the SEC in 2019 for the 2018 calendar year. • In 2019, Anixter’s Conflict Minerals Policy Statement was the third most downloaded item from Anixter’s corporate responsibility webpage. • Anixter continued surveying suppliers for conflict minerals by using a risk-based approach to support its annual SEC reporting obligations. Additional conflict minerals accomplishments can be found in the Environmental Product Compliance section on page 24.
All human rights policies and programs are administered by the executive compliance committee, chief compliance officer, regional compliance officers and the human resources, legal and internal audit organizations. ANTI-HUMAN TRAFFICKING AND MODERN SLAVERY The slavery and human trafficking statement was posted on the corporate responsibility webpage in 2019, highlighting the steps taken during 2018 to ensure that slavery and human trafficking are not taking place in our business or supply chain. The statement was made on behalf of all Anixter entities because the same policies and compliance framework relating to slavery and human trafficking exist across our entire business globally.
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LABOR
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LABOR Anixter strives to create a positive and safe work environment free of discrimination, harassment and inappropriate conduct and one in which employees treat each other fairly and with dignity and respect by: • Supporting and upholding the elimination of discriminatory practices particularly with respect to employment and occupation • Promoting and embracing diversity in all aspects of business operations • Supporting the elimination of all forms of forced, bonded or compulsory labor • Supporting the freedom of association and the right to choose a collective bargaining representative, if desired • Providing a safe and healthy work environment for all employees • Condemning all forms of child exploitation and supporting the elimination of exploitative child labor. EMPLOYEE COMMITMENT
EMPLOYEE DEVELOPMENT
A nixter’s labor policies and programs are communicated through its: • Anti-Harassment Policy
Anixter believes in employees taking charge of their careers and cares about their professional development and goals. All employees have access to It’s Your Move, a career exploration tool for employees launched in 2017. The online tool includes tips, videos and other resources to teach employees about the different departments and career opportunities within Anixter. Employees are also able to schedule meetings with “Career Champions” to discuss their career goals and help them plan their next move. In addition, Anixter helps employees learn and grow through formal and informal mentoring programs.
• Anti-Retaliation Policy • Global Business Ethics and Conduct Policy • Workplace Violence and Response Policy • Global Health and Safety Policy • Privacy Policy • Competitive employee benefit programs • Nondiscrimination in employment and personnel practices • Employee notices of right to join or form unions for purposes of collective bargaining, if desired • Annual compensation benchmarking analysis • Business Integrity Line and other communication mechanisms.
EMPOWERING THE WOMEN OF ANIXTER In 2017, a team of women and executive leaders at Anixter created Anixter CONNECT, a professional development and networking group for women with the goal of empowering the women of Anixter in their professional and personal lives. CONNECT provides a framework for both established and up-and-coming leaders to share professional resources and knowledge as well as networking, education and mentorship opportunities. As of 2019, the group has over 520 members across 26 countries.
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LABOR EMPLOYEE CONCERNS In addition to reporting a suspected issue through local management, human resources, the legal department or a compliance officer, employees can use an internal email account or call a toll-free number or access the Business Integrity Line website to ask ethics- or compliance-related questions or report a suspected issue. Communications can be made anonymously where permitted by local laws. The call center and website are managed by an independent, thirdparty provider and all submissions or conversations are kept confidential and shared only with those necessary to respond to or investigate a report. INFORMATION SECURITY Information security is a critical part of Anixter’s business environment. As a result, Anixter has a robust information security program, with policies and controls that are aligned with well-known security standards, such as ISO 27001 and NIST SP 800-53. Anixter’s information security program includes security awareness initiatives designed to educate employees about computer security to help protect their personal information as well as company information.
U.S. MILITARY VETERAN RECRUITING Being a multinational company headquartered in the U.S., Anixter supports and values those who have served our nation and actively recruits U.S. military veterans as they transition out of careers within the Army, Air Force, Navy, Coast Guard and Marines. Throughout our organization, U.S. military veterans are not only making a difference, but are also embarking on rewarding careers. Within the U.S. in 2019, Anixter hired 41 U.S. military veterans, bringing our organizational total to more than 260.
ARMY
AIR FORCE
MARINE CORPS
NAVY
COAST GUARD
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LABOR EMPLOYEE RECOGNITION In the Anixter Blue Book, the first item listed under “Our Philosophy” is “People come first” and this is demonstrated across the organization in the various ways in which employees are recognized for their outstanding contributions. One way employees are recognized is through awards. The information below provides examples of the various employee recognition awards given to select Anixter employees throughout the year:
AWARD OF EXCELLENCE Nominated by fellow co-workers, the Award of Excellence is Anixter’s most prestigious honor and is awarded to the top 1 percent of all employees globally. These employees demonstrate Anixter’s philosophy to provide excellence for co-workers, customers and partners. In 2019, the Award of Excellence was given to 82 people to honor their outstanding performance in 2018.
AWARD OF EXCELLENCE: BLUE SKY AWARD In the past, Anixter’s practice has been that once an employee has received the Award of Excellence, they cannot be nominated again. This was to ensure a broader group of people would be recognized for their efforts. However, many employees continue to provide outstanding support, excellent service and truly embody our goal of Excellence in Execution. As such, in 2017, Anixter introduced the Award of Excellence: Blue Sky Award. Anyone who has previously received the Award of Excellence is now eligible to be nominated and possibly selected again. In 2019, four Anixter employees were awarded the Blue Sky Award for their exceptional work in 2018.
TECHNOLOGY FELLOW AWARD The Anixter Technology Fellow Award promotes leadership among Anixter’s technical professionals who have contributed extensively to driving innovation in alignment with Anixter’s business strategies and is awarded to one person each year.
President’s Club PRESIDENT’S CLUB Anixter’s President’s Club is a prestigious group of people who embody the drive, spirit and achievement that constitute the best at Anixter. Through dedication, customer service and an incredible work ethic, the members of the President’s Club have earned the opportunity to be recognized. In 2019, 145 people were inducted into the President’s Club for outstanding performance in 2018.
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LABOR HEALTH AND WELLNESS FAIRS The following provides select examples of the various health and wellness events held for Anixter employees throughout the year: • Anixter held its annual health and wellness fairs at its Glenview, Ill. headquarters and at its Alsip, Ill. campus, where various healthcare benefit providers were available to provide information and free flu shots to more than 1,200 employees. • Anixter’s São Paulo location held several events throughout the year where free eye exams, discounted eye glasses, medical screenings and safety, accident prevention and health presentations were offered to more than 60 employees. TUITION REIMBURSEMENT Anixter offers a tuition reimbursement program to eligible employees. In 2019, Anixter reimbursed more than $100,000 in employee tuition costs. EMPLOYEE CERTIFICATION AND TRAINING The following provides select examples of the various employee certification and training programs distributed to Anixter employees throughout the year: • Online training and certification acknowledging compliance with the Global Business Ethics and Conduct Policy is issued to all employees • Affirmation of adherence to Anixter’s security policies is required for all employees • Security awareness training • As part of its worldwide trade compliance program, Anixter delivers a comprehensive online export compliance training course to a majority of its global employees on a scheduled basis • Anixter’s Lichfield, U.K., location successfully conducted both online and classroom environmental awareness and procedural training for targeted staff in support of their ISO 14001:2015 certification
• An active shooter training module—which aligns with the See Something/Say Something campaign, created by the vice president of global environmental, health, safety and security and approved by the Glenview, Ill., police department and the Department of Homeland Security—was distributed as mandatory training to more than 4,900 U.S. employees • More than 220 new hires from three North American business units had the opportunity to learn from and interact with various subject matter experts from across the business that included informational overviews on the global sustainability, environmental product compliance and corporate responsibility programs and highlighted how the programs support their positions and customers • Within the U.S., an online harassment-free workplace training was completed by more than 5,700 employees. HEADQUARTERS INTERNSHIP OPPORTUNITIES Anixter believes in building a strong workforce through handson learning experiences. Every year, a variety of internship opportunities are made available to allow high school and college students to gain real-world experience and evaluate different career fields. These internship programs help align the right people with the right positions, thus building a strong, talented workforce. In 2019, Anixter employed a total of 17 interns across multiple departments at its headquarters, including marketing, finance, legal and operations. LEADING THE ANIXTER TEAM A great workforce starts with great leaders. As part of Anixter’s focus to continually improve, the company relaunched the Leading the Anixter Team program in 2018. This program is a three-day learning and development course which focuses on coaching and leadership for managers across all departments. Prior to enrolling in this course, managers are required to complete an online training session, personality assessment, coaching assessments with all direct reports and review an assigned case study. In 2019, a total of 116 managers successfully completed the program.
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GLOBAL SUSTAINABILITY
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GLOBAL SUSTAINABILITY Through its global sustainability program, Anixter seeks to continuously improve business processes to control and reduce the impact associated with its targeted environmental aspects of energy, waste, materials and natural resources, and transportation. By targeting measurable results within each environmental aspect combined with using the A Sustainable PathSM approach, which focuses on the economic, environmental and social impacts of the organization, Anixter balances environmental responsibility and return on investment.
PROGRAM GOALS
ENERGY GREEN BUILDING CERTIFICATIONS
ENERGY Anixter reduces energy use through innovative technologies, equipment and control systems.
WASTE
Anixter continues to operate and evaluate additional facilities for various green building certifications based upon lease durations and payback calculations. Green buildings help lower operational costs, minimize carbon emissions and provide a comfortable environment for employees. Anixter’s green building certified portfolio consists of the following facilities:
Anixter minimizes waste by capitalizing on opportunities to reduce, reuse and recycle.
• The 214,000-square-foot Lichfield, U.K., facility completed in March 2018 is rated BREEAM® Very Good (Building Research Establishment Environmental Assessment Method®). The facility has also achieved The Planet Mark™ certification with a lifetime carbon reduction of 17 percent.
MATERIALS AND NATURAL RESOURCES
• The 61,000-square-foot annex office building located next to Anixter’s headquarters in Glenview, Ill., attained U.S. Green Building Council LEED® (Leadership in Energy and Environmental Design) certification in 2014.
Anixter consumes fewer materials and natural resources by increasing recycled content in consumables while simultaneously pursuing source reduction strategies.
• The 21,000-square-foot multitenant facility in St. John’s, Newfoundland, attained LEED Silver in 2014. • The 195,000-square-foot facility in Edmonton, Alberta, attained LEED Silver in 2011. • The 457,000-square-foot Alsip, Ill., facility attained LEED certification in 2007.
TRANSPORTATION Anixter lowers transportation emissions by utilizing third-party carriers, fleet vehicles and equipment that meet current environmental standards, maintaining a global noidling policy at warehouse locations and leveraging technology to eliminate the need to travel.
U.K. PHASE TWO ENERGY AUDITS In 2019, physical audits were conducted at Anixter’s Chesterfield, Lichfield and Bracknell, U.K., locations as part of Energy Savings Opportunity Scheme Phase Two. These sites collectively represent 25 percent of the in-scope Anixter U.K. locations that used more than 5.5 million kWh of energy in 2018. The audits produced valuable recommendations to improve each building’s energy efficiency as well as suggestions to apply across the remainder of the network. All audit recommendations are under review for implementation consideration.
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GLOBAL SUSTAINABILITY HIGH-FREQUENCY BATTERY CHARGERS Several Anixter locations around the world use high-frequency battery chargers to recharge forklift and other material handling equipment batteries. These advanced battery chargers not only monitor the health and condition of the batteries, but they also reduce charging time and are up to 94 percent efficient, which saves energy. Anixter continues to add these battery chargers across its global network, deploying 12 new units in the U.S. alone in 2019. STATE-OF-THE-ART DISTRIBUTION CENTER IN ALSIP, ILLINOIS In 2018, Anixter expanded the footprint of its North American flagship distribution center in Alsip, Ill., with the addition of a new 238,000-square-foot facility, equipped with an intelligent conveyor system and voice-picking technology, making it Anixter’s smartest distribution center. Some of the key energysaving features include motion-activated LED lighting systems and a 5,500-foot smart conveyor system, which only operates when objects are placed on it, making it more energy efficient than typical belt-driven systems.
FIELD SERVER VIRTUALIZATION Anixter’s global field locations continue to consolidate and virtualize servers. In 2019, Anixter eliminated 13 field servers by migrating the data and any virtual machines into existing equipment within the Glenview, Ill., and Bracknell, U.K., data centers. Each field server eliminated helps to conserve energy in the location and improves backup and recovery operations as these functions are now controlled within a data center. ENERGY-EFFICIENT LIGHTING AND ADVANCED LIGHTING CONTROL SYSTEMS Energy-efficient lighting solutions remains one of the simplest, most cost-effective ways to improve efficiency and reduce operating expenses. Anixter is a fully authorized valueadded distributor of lighting products and solutions and is committed to improving the lighting efficiency of both our and our customers’ facilities. Anixter lighting experts perform lighting audits to determine the project scope and create an energy-efficient lighting solution specifically designed for each customer’s unique lighting needs. In our facilities, energy-efficient lighting systems can range from advanced systems that include daylight harvesting, zone scheduling, dimmable ballasts/drivers and advanced occupancy control sensors to energy-efficient systems that include fluorescent fixtures and LED lighting. Anixter continues to increase the use of energy-efficient LED lighting and advanced wireless technologies to reduce energy consumption and increase lighting system controls. In 2019, Anixter added LED lighting to 21 global locations covering more than 992,000 square feet of space. In prior years, Anixter has added LED lighting to 51 global locations to illuminate more than 3.6 million square feet of office and warehouse space. ONGOING DATA CENTER EFFICIENCIES In 2019, Anixter replaced the 87 percent efficient battery backup UPS units in its data center with new 96.1 percent efficient units, significantly improving energy efficiency. Anixter continues to consolidate and virtualize servers in its data center as well as increase migration to the cloud and is now more than 90 percent virtualized. Currently, virtualized servers host more than 1,600 virtual machines. Due to the decrease in data center cooling requirements, combined with more than a 40 percent decrease in server space, Anixter continues to successfully use an air conditioning auto changer that rotates the shutdown of one of three air conditioning units each month.
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GLOBAL SUSTAINABILITY SOLAR ENERGY The 130,000-square-foot Willebroek, Belgium, facility— Anixter’s largest in continental Europe—successfully started attaining solar energy from rooftop solar panels in 2011, which continues to power approximately one third of the facility today. Additionally, since the facility opened in 2018, the 214,000-square-foot Lichfield, U.K., facility has been successfully utilizing solar energy to help heat the hot water system, thus reducing the facility’s energy consumption. HIGH-SPEED DOCK DOORS Several Anixter locations around the world use high-speed dock doors that are motion-sensor activated to open and close within seconds. The speed of these dock doors helps to control warehouse temperatures and conserve energy. DATA CENTER BEST PRACTICES Anixter’s Infrastructure as a Platform (IaaP) approach addresses the key building blocks for data center interoperability that can provide agility for budgets, scalability for demand and flexibility for technology choices. The building blocks of power optimization and thermal efficiency specifically identify product solutions and best practices that enable customers to achieve energy savings by deploying state-of-theart infrastructure.
WASTE NEW GLOBAL RECYCLING INITIATIVES In 2019, Anixter implemented 29 new global recycling programs that successfully diverted more than 354,500 lb. of wood, metal, plastics, cardboard, food waste, glass and singlestream/mixed recyclables from landfills. RECYCLING EMPTY PRINTER CARTRIDGES By returning empty printer toner and ink cartridges to global office supply providers for reuse, Anixter prevents thousands of pounds of plastic and metal from entering landfills annually. Anixter’s global locations continued to successfully recycle empty toner cartridges from single boxed units to pallet load quantities. For example, in 2019, the Alsip, Ill., and Willebroek, Belgium, facilities returned more than 240 lb. and 260 lb. respectively. SUPPLY CHAIN SERVICES Anixter’s Supply Chain Services team provides more than 7,200 global customers with various value-added services that include, but are not limited to: • Kitting of multiple line items into a single finished good part number to ease ordering, reduce waste at the job site and improve job site receiving • Preassembling of racks, cabinets and cameras prior to shipping to improve job site productivity and lower overall project costs • Providing job site waste diversion documentation, when requested, for performing the above services to help earn points for green building certification projects. For example, eight Anixter locations across eight countries collectively diverted and documented more than 36,800 lb. of cardboard, wood and plastic for customer-specific green building projects in 2019. In addition, Anixter locations in 15 countries completed more than 2,240 customer-specific product enhancement and packaging services that diverted and recycled packaging waste prior to it reaching job sites in 2019. The weight of this diverted packaging waste is included in the North American and global recycling snapshots.
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GLOBAL SUSTAINABILITY
NORTH AMERICAN RECYCLING SNAPSHOT Anixter’s North American operations maintain the largest square footage building footprint and contain the largest number of employees. This graphic provides a 2019 snapshot of key North American recycling volumes based on annualized tonnage calculated from fixed and intermittent services. Where service providers cannot provide actual weights, they utilize industry guidelines for commodity weights and waste container capacity utilization.
264,130 lb. of paper
5.3 million lb. of single-stream and commingled recyclables
104,165 lb. of batteries
22,420 lb. of plastics 39,625 lb. of obsolete electronic equipment
2.7 million lb. of wood
1.3 million lb. of cardboard
136,500 lb. of material handling equipment
24,410 lb. of organic food waste
376,300 lb. of construction/ demolition materials
199,720 lb. of scrap metals
GLOBAL COMPLEX PROGRAMS Anixter’s complex programs team focuses on providing integrated solutions within customers’ complex global supply chains. By partnering with Anixter, complex program customers realize significant improvements in customer satisfaction, working capital and cash flow, while also reducing overall supply chain risk. As a result of Anixter’s engagement, complex program customers are able to improve their balance sheets and use the improved cash flow to invest in ongoing business expansion. These tangible benefits are driving substantial growth and expansion within Anixter’s complex program business as Anixter currently operates 25 dedicated and 12 shared facilities, which are staffed by more than 250 employees to support 13 complex programs within 25 countries. Most complex programs also incorporate various value-added services from within Anixter’s Supply Chain Services offering to further support customers’ global operations and job site requirements. WOOD REEL LANDFILL DIVERSION In Q2 and Q3 2019, Anixter’s Suwanee, Ga., and Alsip, Ill., locations started diverting 53-foot trailers of disassembled wood reels from landfills to a custom wood reel manufacturing company. The discarded reels are either modified and refurbished for resale or, if they are too damaged, they are shredded for poultry bedding or other commercial uses. By year end, both locations successfully diverted more than 90,000 lb.
of wood reels from landfills, while completely eliminating the associated landfill hauling and disposal expenses. REEL CONSOLIDATION Anixter’s reusable PARAPULLSM paralleling reels can accommodate various cut-to-length cables of the same gauge on a single multichambered wooden reel. Because each PARAPULL reel is reused an average of six times, their ongoing use helps preserve natural resources while eliminating empty reel disposal costs and waste from job sites. Customers using a single PARAPULL reel can eliminate two to four individual wooden cable reels on a job site, which reduces shipping and handling costs while increasing contractor productivity. In 2019, Anixter shipped more than 1,250 reusable PARAPULL reels to customers across North America. RECYCLING AUDITS In 2019, Anixter’s internal ISO audit team reviewed 23 global office and warehouse locations to ensure the locations’ recycling programs—which can consist of paper, cardboard, wood, metal and plastic—were being effectively supported by management and used by staff. Once again, all the locations successfully passed the audit team’s screening criteria.
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GLOBAL SUSTAINABILITY PAPER SHREDDING
REUSE PROGRAMS
While Anixter endeavors to minimize paper consumption as much as possible, paper use is often a business necessity. By leveraging location-level paper recycling and shredding programs, Anixter seeks to minimize its overall environmental impact. In 2019, 79 U.S. and Canadian locations collectively shredded and recycled more than 252,200 lb. of paper. All recycled paper is sent to mills where it is pulped and de-inked to make recycled paper products like paper plates and paper towels. According to our shredding partner, Anixter’s program saved more than 2,150 trees from being harvested.
Anixter locations around the world successfully harvest and reuse select inbound packaging and shipping materials received from supplier partners when they are in like-new condition and meet our strict quality standards. In addition, Anixter locations receive cable reels from suppliers safely secured to wooden reel cradles. All reel cradles that pass Anixter’s integrity inspections are reused to ship cable reels to customers. This has lowered freight claims and costs as well as improved operational efficiencies and customer satisfaction. In 2019, Anixter’s Chesterfield, U.K., location installed a cardboard shredding machine to reprocess discarded packaging into protective packing material to help secure adhesives during transport. Doing so also helped reduce the location’s annual replacement packaging purchasing costs.
SELECT GLOBAL RECYCLING SNAPSHOT The following 2019 snapshot of key international recycling volumes is based on fixed and intermittent disposal services. Where service providers cannot provide actual weights, they utilize industry guidelines for commodity weights and waste container capacity utilization. • Anixter’s Brisbane and Perth, Australia, locations recycled more than 86,820 lb. of paper, cardboard, metal and wood
• Six Mexico locations recycled more than 49,850 lb. of cardboard, paper, plastic, wood and obsolete electronic equipment
• The Dubai, UAE, location recycled more than 16,580 lb. of paper, cardboard and plastic
• The Santiago, Chile, location recycled more than 225,250 lb. of cardboard, paper, plastic, wood and obsolete electronic equipment
• The Willebroek, Belgium, location recycled more than 109,600 lb. of paper, cardboard and wood
• The Lima, Peru, location recycled more than 67,000 lb. of plastic, wood and obsolete electronic equipment
• The Stuttgart, Germany, location recycled more than 39,100 lb. of wood, paper, and plastic
• The Bogota, Colombia, location recycled more than 25,970 lb. of cardboard, paper, plastic, wood and obsolete electronic equipment
• The Barcelona, Spain, location recycled more than 3,100 lb. of cardboard, plastic and paper
• The Buenos Aires, Argentina, location recycled more than 4,240 lb. of cardboard, wood and paper
• The Milan, Italy, location recycled more than 46,290 lb. of wood, paper, plastic, metal and obsolete electronic equipment
• The San Jose, Costa Rica, location recycled more than 3,840 lb. of cardboard, paper, plastic and obsolete electronic equipment
• The Lichfield, U.K., location segregated over 748,870 lb. of waste materials for recycling and waste-to-energy generation
• The Sao Paulo, Brazil, location recycled more than 42,000 lb. of cardboard, wood, paper, plastic and obsolete electronic equipment
• The Singapore location recycled more than 28,600 lb. of cardboard, paper and obsolete electronic equipment • The Dublin, Ireland, location recycled more than 81,910 lb. of wood, paper and obsolete electronic equipment • The Chesterfield, U.K, location recycled more than 172,000 lb. of cardboard, wood and metal, while the remaining general waste went to a waste-to-energy facility, making the location a zerolandfill site for the third consecutive year
• The Saint Michael, Barbados, location recycled more than 640 lb. of cardboard and wood • In five countries alone, Anixter successfully recycled more than 2.6 million lb. of scrap copper and metals.
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GLOBAL SUSTAINABILITY CABLE CUTTING In 2019, Anixter processed more than 2.6 million custom cable cuts for customers from 143 global warehouse locations. By providing cable cut to the exact length required by the customer, job site cable waste is virtually eliminated. Job site costs are also reduced as the need to purchase, cut and control master cable reels and the resulting short cable lengths, or leftover cable, no longer exists. ASSET TRACKING Anixter Trakr™ is a proprietary, patented asset-tracking solution that incorporates multiple technologies to track, locate and provide visibility to high-valued assets along with incorporating an inventory management component to help customers locate assets in large laydown yards and complex project sites. Trakr helps customers reduce labor costs by efficiently locating assets via its mobile app. Trakr also reduces the potential to cut from incorrect reels or overbuy due to misplaced products, further reducing material waste. In addition, Trakr provides visibility of the cut lengths of cable remaining on master reels throughout the job site, which helps minimize scrap and identify reorder points. In 2019, Anixter attached more than 200 Trakr beacons to large DC and medium-voltage cable reels, valued at more than CAD$9 million, allowing the customer to locate and manage the inventory in their warehouse as well as track each reel’s movement across their 12-mile, 25-station, light rail transit system in Toronto, Ontario. Anixter and Trakr helped the customer reduce time, labor costs and scrap over this 1.5-year project.
MATERIALS AND NATURAL RESOURCES WAREHOUSE MANAGEMENT SYSTEM The Anixter-developed and Anixter-supported next-generation WMX warehouse management system uses state-of-the-art technology and was designed to quickly incorporate operational system enhancements to meet customer and market demands. The WMX system also significantly reduces paper and printing waste generated throughout the entire order processing cycle. In 2019, the Anixter WMX team continued to successfully incorporate more enhancements that improved performance, increased operational efficiencies and expanded user functionality in the facilities across North America that currently use WMX. The largest accomplishment attained in 2019 was consolidating two separate locations into the new Montreal, Quebec, location and converting them both to WMX. This was the most complex WMX conversion completed to date. Roughly 75 locations have been converted to the WMX platform with most of these locations utilizing the new point-of-sale storefront option. REDUCING CABLE REELS AT THE JOB SITE Anixter’s Supply Chain Services offers a layering service that reduces the total number of cable reels needed at a job site by adding multiple layers of cable to a single reel chamber. As more layers are added, fewer reels are needed. Having fewer reels at a job site reduces transportation costs, transportation emissions and, when wood reels are used, timber consumption. This service provides further value when combined with Anixter’s PARAPULLSM or PARASPINSM services that use returnable reels. In 2019, Anixter’s North American locations shipped more than 4,200 layered reels to customers’ job sites. RAINWATER HARVESTING Anixter’s Lichfield, U.K., facility is equipped with a water harvesting system, which collects and filters rainwater. The filtered rainwater is distributed on demand to various points of use, reducing the amount of water the facility uses from public water mains. The water harvesting system is compliant with BS8515 and the Water Supply (Water Fittings) Regulations of 1999.
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GLOBAL SUSTAINABILITY FOCUSING ON PLASTIC • Anixter Belgium continues to reduce plastic usage in its packaging materials. Unless requested otherwise, all customers utilizing Anixter’s Supply Chain Services’ fiber patch cord labeling services since August 2018 have received their products wrapped in 100 percent recycled paper rather than in plastic bags. In 2019, Anixter Belgium shipped more than 18,800 pre-labeled fiber patch cords in 100 percent recycled paper that can either be reused or recycled. • In 2019, Anixter’s Barcelona and Madrid, Spain, locations changed their coffee machines to eliminate the use of disposable plastic cups as well as added refillable water dispensers to eliminate the use of plastic water bottles. • To help eliminate disposable cups and reduce waste, 13 Anixter locations in the U.K. collectively purchased and distributed more than 460 reusable mugs to employees. • Anixter’s Willebroek, Belgium, location changed from using plastic water bottles to using water stations and helped employees transition by distributing refillable water bottles to each employee. • An Anixter U.K branch that operates an on-site vendormanaged inventory program consisting of more than 15,000 material bins worked closely with the customer to begin two single-use plastic bag reduction trial programs in 2019. As the Anixter location makes two material deliveries a day, any personal protective equipment or workware items brought to the site in plastic bags are removed before being placed into the material bins and all plastic bags are then taken back to the Anixter location for recycling. This program is projected to recycle more than 50,000 single-use plastic bags per year. The second program underway helps the customer’s staff eliminate using plastic bags for carrying bin hardware and other small items around the facility by instead using washable cotton drawstring and recyclable paper bags. This program is targeted to eliminate the use of more than 150,000 single-use bags per year. Several other recycling programs have been proposed to the customer to recycle single-use items.
• By working closely with their just-in-time delivery customer in 2019, Anixter’s Plymouth, U.K., location successfully migrated from using single-use plastic bags to reusable plastic totes to manage on-site material deliveries. • In 2019, Anixter’s Alsip, Ill., facility began a plastic spool recovery program, where more than 11,000 lb. of material was diverted from landfills and sent to recycling and wasteto-energy processing centers. REUSABLE METAL REELS Anixter offers electrical contractors the option of receiving cut-to-length cable on reusable metal PARASPIN reels that have five independent spinning chambers from which to pull cable. Customers using a single PARASPIN reel can eliminate four individual wooden cable reels on a job site, which reduces shipping and handling costs while increasing contractor productivity. As the PARASPIN reel eliminates the use of wood and is reusable, natural resources are preserved and cable reel waste and disposal costs are eliminated at the job site. Anixter also offers SLIM-SPIN reels, which are PARASPIN reels designed to fit through standard doorways. In 2019, Anixter shipped and retrieved more than 2,900 reusable PARASPIN reels and more than 480 SLIM-SPIN reels from customers’ job sites across North America. REUSABLE WOODEN REELS The INSTA-REEL by Anixter consists of a standard wooden reel that has oversized flanges attached to both sides. INSTA-REEL’s inner reel spins independently of the outer flanges, creating a reel with a built-in payout stand. After use, the INSTA-REEL is returned to Anixter and is reused. The reuse of each INSTAREEL helps preserve natural resources while eliminating empty reel disposal costs and waste from job sites. In 2019, Anixter shipped more than 5,850 INSTA-REELs to customers in four countries, which were then returned to Anixter to be reused. COLLECTING AND REUSING EMPTY WOODEN REELS IN THE U.K. In 2019, Anixter’s Lichfield, U.K., location deployed 4,261 wooden cable reels to customers wrapped with cable and, in turn, collected 4,198 empty reels—or 98.5 percent—for reuse. This is a 5 percent collection improvement from 2018.
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GLOBAL SUSTAINABILITY ELECTRONIC EXPENSE REPORTING
E-BUSINESS
In 2019, Anixter’s electronic expense reporting system, which is now used in 41 countries and includes a mobile app, processed more than 54,800 expense reports that eliminated more than 329,000 sheets of paper.
Anixter’s e-business offerings allow global customers and suppliers the ability to seamlessly process a vast array of business transactions with Anixter in a secure and paperless environment. Anixter’s e-business highlights include:
GREEN OFFICE SUPPLIES
• E lectronic data interface (EDI): In 2019, Anixter successfully processed more than 1.9 million global EDI transactions, of which more than 816,800, or approximately 41 percent, resulted in the elimination of a paper transaction, such as an invoice, purchase order or forecast
Anixter continues to focus on purchasing office supplies that contain green attributes where feasible. Green attributes can include, but are not limited to, products that contain recycled or plant-based materials, are remanufactured or contain ecolabels or third-party certifications. Accomplishments include: • Anixter’s 18 U.K. locations spent more than 62 percent of their total office supply expenditures on products that contain green attributes, as identified by the office supply partner • Anixter’s global locations continued to use remanufactured toner and ink cartridges for printers instead of new OEM cartridges, where available • More than 58 percent of print production jobs utilize soy-based inks. DIGITAL MARKETING Anixter began its digital marketing initiatives in 2011 by focusing on the promotion of Anixter and its products and services over various digital channels, such as web, mobile, social media and email. Anixter’s website is a useful tool for customers to access their accounts, view real-time pricing and inventory, place orders, request quotes, track order and shipment status, and download invoices. Part of the digital marketing strategy has been the migration of traditional print materials into digital formats for use by sales representatives and customers. The materials converted into digital formats include print catalogs, case studies, fact sheets, reference guides, product specification sheets and various other documents. Anixter has roughly 370,000 parts with accompanying product specification sheets in digital format for easy access on anixter.com. Being able to perform all these business functions online reduces paper usage for both Anixter and its customers.
• E-delivery: Anixter offers its customers the ability to receive invoices, credit memos and statements via email as PDF documents and/or customizable formats such as CSV, XML, Quickbooks™, Sage 300/Timberline, Sage 50/Peachtree, Forefront Construction Suite and Viewpoint Construction. In 2019, Anixter sent more than 2.4 million PDF documents via email and has more than 100,000 customers set up for e-delivery, of which more than 1,100 customers are using customizable formats. In addition, Anixter provides various e-delivery invoices to local governments, which are extensively utilized across Latin America in countries like Argentina, Brazil, Chile, Colombia, Mexico, Peru, Costa Rica and Uruguay, as well as in Portugal and Spain. RECYCLED CONTENT Anixter seeks to use recycled content in consumables where feasible. Two examples include: • Anixter’s U.S. warehouses, which collectively process the largest outbound line volume in the global network, shipped more than 1.7 million lb. of corrugated boxes, packing paper, paper tape and related packaging items that are made from recycled content ranging from 40 to 100 percent • All of Anixter’s North American business cards and marketing collateral are printed on 100 percent recycled paper that is certified by the Forest Stewardship Council.
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GLOBAL SUSTAINABILITY CORPORATE RESPONSIBILITY WEBPAGE AND DOWNLOADS
ANIXTER MOBILE APP
Since launching the corporate responsibility webpage on anixter.com in recognition of Earth Day 2014, the site continues to add new content and draw global stakeholders, as measured through page views and document downloads. In 2019, the webpage exceeded 6,000 visitors and Anixter’s Corporate Responsibility Report, Supplier Code of Conduct, Conflict Minerals Policy Statement and the Business Ethics Guide remain the page’s most frequently downloaded items.
In 2016, Anixter released its mobile app, making it easy for customers to shop and manage their accounts on the go. By digitizing the order and account management processes, Anixter is helping customers work more efficiently and eliminating the paper usage associated with the traditional ordering process. Using the Anixter app on their mobile device, customers can now perform the following tasks from anywhere:
E-CARDS
• Download manufacturer specifications
With more than 9,300 global employees, Anixter continues to offer staff the option of sending animated e-cards to customers and supplier partners rather than using traditional printed paper holiday cards. Each year, a variety of e-cards are created in eight different languages for employees to choose from.
• Find and contact the nearest Anixter location to request a quote
JUST-IN-TIME SCANNING SOLUTIONS
Anixter’s accounts payable team continues to successfully migrate various material and service suppliers onto electronic payment platforms, which eliminates check fraud as well as the paper usage associated with printing and mailing paper checks. In 2019, more than 328 global suppliers were newly set up or converted to begin accepting electronic payments. Currently, more than 2,990 suppliers now accept electronic payments. In total, Anixter processed more than 144,420 electronic payment and remittance transactions in 2019, eliminating approximately 327,900 sheets of paper, envelopes and postage.
Anixter has developed several automatic replenishment tools where customers or Anixter field representatives can scan product or rack labels to automatically create orders to Anixter. Users have the flexibility of digital input methods, such as scanning, web portal or file uploads, to generate orders. These electronic submission and reporting methods reduce the use of paper on site since the orders can be tracked without any handwritten order forms, sheets or cards. By leveraging Anixter’s solutions, customers can reduce time and resources allocated to purchasing inventory in addition to reducing the number of shipments received and excess inventory. In 2019, Anixter received more than 942,000 digitized sales order lines through its various just-in-time scanning systems. INVENTORY CONTROL SOFTWARE Anixter offers an inventory management software application called RapidFire, which allows customers to scan and track inventory purchased from Anixter and other suppliers. Rather than keep manual paper logs using a pen and clipboard, this web-based software can be accessed from a PC or mobile device, allowing Anixter customers the ability to view inventory status in real time. In addition to helping customers use software to reduce stock outs, excess inventory and loss, Anixter, upon request, can remove and recycle all product packaging prior to shipping to help customers attain their environmental goals. Currently, Anixter customers are collectively managing over 27,000 SKUs through Anixter’s RapidFire inventory control software.
• Search through 370,000 products and place orders online
• Explore Anixter services and customized solutions. ELECTRONIC FUND PAYMENTS
CANADA CUSTOMS PAPERLESS INVOICING AND PAYMENTS Anixter has embraced a program with Canada Customs called Accounts Receivable Ledger (ARL), an online tool for viewing and downloading invoices, which eliminates the need for paper invoices to be picked up from Canada Customs every day. The program also enables electronic funds transfers, removing the need to print and mail checks to Canada Customs, which eliminates more than 800 checks annually.
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GLOBAL SUSTAINABILITY
TRANSPORTATION
NO IDLING PROGRAM Anixter continues to operate a global no idling program at its warehouses and headquarters. Truck drivers are required to turn off their engines while waiting for materials to be loaded or unloaded from their vehicles. Anixter-designed “No Idling” signs are placed on driver entrance doors as well as in select yard and loading dock locations. The no idling program seeks to improve air quality, reduce carbon emissions and increase safety. In 2019, more than 50 “No Idling” signs were posted at U.S. locations. A Sustainable PathSM
LONGER COMBINATION VEHICLES Anixter’s global transportation team continues to successfully leverage third-party carriers’ longer combination vehicles (LCVs) that increase the cargo capacity of combination trucks by using longer and/or multiple trailers. According to the EPA’s SmartWay program, LCVs generally have much better ton-mile fuel economy than other combination trucks as they carry more cargo per trip, which results in lower fuel consumption and reduced greenhouse gas and air pollutant emissions. VEHICLE MONITORING AND ROUTE OPTIMIZATION Anixter continues to leverage technology to monitor select fleet vehicles to help increase fuel economy, lower carbon emissions and improve driver productivity and safety while ensuring compliance.
SMARTWAY CARRIERS Close to 90 percent of Anixter’s preferred U.S. and international transportation spend is with EPA-certified SmartWay carriers for products shipped to and from the United States. SmartWay carriers focus on reducing emissions and fuel consumption.
For example, Anixter U.S. utilizes electronic logging devices (ELD), a congressionally mandated rule that is intended to help create a safer work environment for drivers by making it easier and faster to accurately track, manage and share records of duty status (RODS) data. An ELD synchronizes with a vehicle engine to automatically record driving time for easier, more accurate hours of service (HOS) recording. Anixter currently has 60 delivery vehicles that utilize ELDs.
SHIPMENT CONSOLIDATION
In addition, Anixter continues to implement GPS route optimization tools for those locations that operate final mile deliveries. These tools not only improve customer service, but also increase operational efficiency and reduce total delivery costs by consolidating routes, enhancing driver utilization, minimizing route miles and reducing fuel usage. Anixter U.S., Canada and the U.K. currently operate more than 400 delivery vehicles that utilize route optimization tools.
Anixter’s global engineering teams work with customers to efficiently develop standards and compliant solutions that respond to change, drive innovation and deliver customer value. These teams use the latest in video and voice conferencing tools to provide instant support for customers’ unique application needs. This reduces the need to visit customers in person, thus reducing the emissions associated with travel.
Anixter continues to successfully utilize third-party transportation partners to collect, consolidate and ship products from global suppliers to Anixter and customer locations around the world. By leveraging supplier shipment consolidations at various origin points, Anixter reduces operating expenses, increases material visibility and lowers emissions. TECHNOLOGY SUPPORT SERVICES
COMMUTER BENEFITS PROGRAM
EXPANDING EMISSIONS-REDUCING AND FUEL-EFFICIENT FLEET VEHICLES
Since 2009, Anixter has offered U.S. employees a commuter benefits program that allows qualified public transportation and/or parking expenses to be automatically deducted pre-tax from paychecks. The program continues to grow and encourages staff to use public transportation, which helps protect the environment while saving users money.
In 2019, Anixter in the U.K. replaced six light commercial vehicles with the Euro 6.2 standard, which aims to reduce nitrogen oxide, carbon monoxide, hydrocarbons and particulates from the exhaust gas. Within North America, Anixter replaced 41 vehicles with more aerodynamic and fuel-efficient models.
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GLOBAL SUSTAINABILITY ANIXTER’S UNIQUE CANADIAN CUSTOMS OPERATIONS
ONLINE EMPLOYEE EDUCATION
As Anixter electronically clears all its own products that ship to Canada under a self-clearance designation, U.S. imports moving by truck that pre-clear before reaching the border do not have to stop and await processing, thereby helping to reduce overall exhaust emissions. The self-clearance designation also gives Anixter a distinct advantage as the custom clearance transaction is faster since it does not need to pass through an outside customs broker. In addition to improving the speed of transaction, it also improves the visibility and accountability of every international import Anixter brings into Canada. For example, in 2019, Anixter’s Canadian locations processed more than 69,000 import entries containing more than 116,000 lines. In addition to handling the Canadian imports from the U.S., Anixter’s Canadian transportation team is responsible for shipments leaving Canada and has processed more than 5,800 export shipments containing more than 9,900 lines in 2019.
Anixter uses an electronic delivery model for much of its learning and development programs. Web-based virtual workshops, classes and e-courses are delivered via a global learning management system (LMS). The LMS helps to reduce carbon emissions by eliminating employee travel and also helps to preserve natural resources as printed training materials are often eliminated. In 2019, Anixter employees successfully completed more than 65,000 courses from 1,400 online modules. ONLINE CUSTOMER EDUCATION Through Anixter University, Anixter creates and offers universitylike courses to educate customers globally on the latest standards and industry best practices for data centers, physical security, building technologies and industrial infrastructure. Course examples include power distribution and thermal management, which covers energy-efficient design, metering and monitoring of power using the power usage effectiveness (PUE) metric established by The Green Grid and how best to separate hot exhaust air from chilled supply air. Courses are available in live or on-demand formats.
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ENVIRONMENTAL PRODUCT COMPLIANCE
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ENVIRONMENTAL PRODUCT COMPLIANCE Anixter’s environmental product compliance team is comprised of specialists who are committed to: • Determining the compliance status of products to applicable environmental regulations in the countries where Anixter conducts business • Fully complying with the Conflict Minerals Rule under the Dodd-Frank Act • Identifying, monitoring and complying with new and existing environmental product compliance, international substance control and extended producer responsibility obligations • Working with the global sales teams and partner suppliers to ensure our obligations in relation to customer environmental product compliance specifications are successfully met • Continuously improving processes and training team members and stakeholders • Reviewing and providing input to the commercial legal contracts team for the negotiation of both supplier and customer contracts • Advancing the use of technology to help fulfill the above.
ONGOING COMPLIANCE ENHANCEMENTS Anixter continues to enhance existing procedures and systems to further reduce the risk of potentially shipping products that may not meet international substance regulations from U.S. facilities. Anixter continues to successfully survey suppliers for compliance to the updated REACH candidate list, among other regulations. Furthermore, Anixter continues to develop processes to proactively collect environmental product compliance data from suppliers at the point of purchase and at part setup. Anixter’s continued focus on refining and streamlining its product classifications has simplified the environmental product compliance team’s ability to identify impacted parts for compliance with various environmental regulations.
The purpose of the steering committee is to:
Under the RoHS Directive, the restriction of four additional substances became effective in July 2019. Anixter’s environmental product compliance team was proactive about the change to ensure continued uninterrupted supply of compliant products to our applicable customer base.
CUSTOMER SUPPORT
In 2019, Anixter established an environmental product compliance steering committee. The steering committee consists of representatives from the following functions: legal, category management, quality, corporate audit, global process owner and environmental product compliance.
• Provide corporate governance on the environmental product compliance function • Create awareness about forthcoming regulations and compliance trends • Approve proposed compliance initiatives • Monitor the status of existing programs. The environmental product compliance team developed new processes and added new team members to further support Anixter’s extended producer responsibility compliance program.
In 2019, the environmental product compliance team implemented a business analytics tool to analyze customer requirements, trending customer requests for applicable parts and supplier combinations. This tool helps Anixter better predict forthcoming requests and obtain the required supplier documentation before customers request it. Additionally, the environmental product compliance team developed a shared tool for Anixter salespeople to collect already obtained manufacturer compliance declarations to provide responses to customer requests as soon as possible.
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ENVIRONMENTAL PRODUCT COMPLIANCE ONGOING CONFLICT MINERALS ACTIONS Anixter continues to partner with a third-party provider for all supplier outreach, follow-up activities and data management. The provider analyzes all inbound supplier response documentation and provides various performance-based activity and status reports in support of Anixter’s annual Conflict Minerals Report. Highlights of the status report for 2019 include: • Anixter improved supplier contact data quality to improve responsiveness and reduce duplication • Anixter continued to translate our communications to match that of the supplier’s country language during the annual conflict minerals survey campaign • Anixter participated with our third-party provider to send a letter to 3TG smelters, petitioning them to participate in the Responsible Minerals Initiative (RMI) • Anixter continued generating a conflict minerals reporting template (CMRT) that better reflects the supply chain for each specific customer when required • Utilizing its software partner, Anixter distributed conflict minerals training materials throughout its supply chain to increase knowledge and awareness of suppliers’ obligations under the rule
• The North American and corporate environmental product compliance teams continued to provide content that helped create Anixter’s annual: 1. Company-level CMRT customer response 2. SEC Form SD 3. Conflict Minerals Report • Anixter continues to communicate to suppliers, through our third-party service provider, discrepancies in supplier CMRTs as they submit them in real time, allowing suppliers to understand their reporting errors and provide an accurate CMRT before the submission is completed • Anixter ensures that suppliers are alerted of risk in their supply chain as soon as possible, upon receipt of the supplier’s CMRT. This is done through an automated receipt that identifies the smelters/refiners that have been reported and thus allows the supplier an opportunity to resubmit a customer-specific CMRT and perform additional due diligence in a timely manner.
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HEALTH, SAFETY AND SECURITY
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HEALTH, SAFETY AND SECURITY The health, safety and security program is designed to create, implement and maintain a healthy and safe work environment for all employees, visitors and contractors. Everyone at Anixter is part of this program. Anixter’s global health, safety and security teams work to make sure compliance elements are met and that the guidelines of the global safety and environmental management system are followed. These teams make resources available and define responsibilities to enable the company to operate in a manner that provides a safe and healthy workplace while also protecting the environment. ENSURING A SAFE WORK ENVIRONMENT
FACILITY INSPECTIONS
Anixter is committed to providing employees with a safe and healthy work environment through its:
In 2019, Anixter used an external auditor to voluntarily complete human element inspections at 19 global facilities. These inspections focused on fire protection systems, sprinklers, sprinkler control valves and hot work areas.
• Global Health and Safety Policy • Business Integrity Line and other communication mechanisms • Global safety and environmental management system
WORKPLACE VIGILANCE
• Monthly “Safety Toolbox Talks” via Anixter’s learning management system
Anixter’s vice president of global environmental, health, safety and security continuously monitors global operations and reviews the global safety action list with management on a quarterly basis. This allows Anixter to address any current concerns and prioritize future actions.
• Equipment safety training
AUDITS AND CERTIFICATIONS
• Electronic notification and mandatory staff training on policy modifications
• All four of Anixter’s Edmonton, Alberta, facilities successfully completed internal and external compliance audits and received the province’s Certificate of Recognition in 2019. This is awarded to companies who have health and safety programs that meet or exceed standards established by Occupational Health and Safety.
• “Start of Shift” weekly safety communication • Continuous location management education
• Department of Transportation driver safety training • “Safety Alert” and “Safety Reminder” communications in response to serious or potentially serious injuries and incidents • Certification or compliance to the ISO 14001:2015 Standard • Certification or compliance to OHSAS 18001, International Standard for Occupational Health and Safety Management System • Monthly driver safety communication • Global security and asset protection program. ONGOING TRAINING AND EDUCATION In 2019, the health, safety and security teams: • Provided oversight on five continents and in ten languages
• In 2019, Anixter U.K. went through a robust health and safety audit process to become Alumcus SafeContractor certified. This accreditation demonstrates Anixter’s continued commitment to offering health and safety excellence to our customers. • Internal and external compliance audits were also successfully completed at two international locations for ISO 14001:2015 in 2019. • Anixter’s Dubai, UAE; Chesterfield, U.K., and Lichfield, U.K., locations are certified to ISO 14001:2015 – Environmental Management Systems.
• Distributed 357 health and safety topics for local “safety huddles” globally • Completed 18 compliance site audits • Assigned 2,600 training modules, trained 3,128 employees on site in group settings and had 405 employees complete written certification tests.
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HEALTH, SAFETY AND SECURITY GLOBAL SECURITY AND ASSET PROTECTION The global security and asset protection program is designed to create, implement and maintain physical security programs and measures to protect our employees and assets while mitigating loss. Anixter’s global security and asset protection team partners with employees, suppliers and contractors to make sure our facility security standards and guidelines are compliant to Anixter’s physical security standards. As Anixter faces new business challenges and opportunities every day, Anixter’s global security and asset protection team utilizes various risk assessments, analytics, proactive measures and advanced technologies, as well as collaborates with external global security practitioners specializing in the protection of assets, people, property, business fraud and security in the workplace, to provide greater visibility to our operational and business realities and help keep the organization safe and secure. This team seeks to identify, prioritize and manage key risks by utilizing various tools and programs, such as the: • Global daily opening and closing security checklist report • Global incident report • Business Integrity Line • Fraud awareness training and best practices • Anixter physical security standards • Internal and external investigations • Monthly compliance report • Workplace security and safety training.
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QUALITY MANAGEMENT SYSTEMS
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QUALITY MANAGEMENT SYSTEMS Anixter’s quality management system provides global support to all business divisions and segments through a variety of services by the corporate quality team. A commitment to continuously improving processes and maintaining the best quality practices drives Anixter’s focus to meet or exceed customers’ expectations. ENSURING ONGOING QUALITY
CONTINUED QUALITY MANAGEMENT IMPROVEMENTS
Anixter’s quality management system is supported by its:
In 2019, the quality management teams:
• Global quality manual
• Continued to bring all global certifications under a single sample plan and registrar for better management, efficiency and oversight
• Mandatory staff training on policy and procedure updates • Quality procedures • Global on-site training and support for quality management system functions • Standard operating procedures • New business and customer audit support • Formalized change management protocol to support improvement initiatives • Continuous employee education in best practices • Certification or compliance to the ISO 9001:2015 and AS9120B Standards • Operations help desk. ISO STANDARDS • 45 locations certified to ISO 9001:2015 • 142 locations compliant to ISO 9001:2015 • Three locations certified to ISO 14001:2015 • Three new locations certified to ISO 9001:2015. OPERATIONS HELP DESK Anixter’s operations help desk is a support group available to all Anixter employees to analyze internal systems and provide assistance to address customer or internal inquiries. In 2019, the team:
• Completed the full implementation of global quality management system auditing in Singapore; Bogota, Colombia; Lima, Peru; Brisbane, Queensland, Sydney, New South Wales, Melbourne, Victoria and Perth, Australia • Completed on-site support for operational processes in Lima, Peru; Montreal, Quebec, and Poole, U.K. • Completed internal ISO 9001:2015 lead auditor training for the Asia-Pacific, Caribbean and Latin America, and North America regions • Completed 45 internal location audits and site reviews to improve Anixter’s quality management system and location certification • Created more than 37 standard operating procedures or work instructions to address new processes and customer requirements • Updated more than 128 existing standard operating procedures policies to include revised best practice instructions derived from feedback obtained from customers, health and safety team members and suppliers.
• Completed more than 390 customer and supplier quality questionnaires or surveys • Created and assigned 156 quality training modules addressing new or changing procedures • Processed 16 operational change announcements via change management • Completed 140 ISO auditor and awareness training assignments • Addressed more than 5,000 individual internal support calls.
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CHARITABLE AND SOCIAL RESPONSIBILITY PROGRAMS
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CHARITABLE AND SOCIAL RESPONSIBILITY PROGRAMS Around the world, Anixter is powered by employees who have the talent and dedication to address the most challenging opportunities and problems, and their efforts go beyond business and into the communities where they work and live. Anixter believes it is important to support global communities and encourages employees to get involved with the causes and charities they care about. The Anixter Cares program is powered by these people and supports various charitable organizations. Anixter provides company-matching gifts to select charities and institutions of higher education within the U.S. and Canada and offers time off for employees to volunteer at nonprofit organizations. Anixter also believes in promoting diversity and is committed to the participation and advancement of small businesses and business enterprises owned by minorities, women and disabled veterans.
AMERICAN RED CROSS
BERNIE’S BOOK BANK
Anixter was a sponsoring member of the 17th annual Chicago Red Cross Heroes Breakfast, an event that honored 12 local people for their heroic actions in 2019 and raised money to provide disaster victims with basic necessities, as well as vaccinations for children, volunteer training and other lifesaving skills. Additionally, the Anixter headquarters hosted a blood drive in which employees voluntarily donated enough blood to save 84 lives.
In 2019, Anixter’s corporate teams volunteered more than 100 hours during four community service outings at Bernie’s Book Bank in Lake Bluff, Ill., where they helped sort and pack books for students in need. Anixter employees also contributed more than 300 used books to the students. In addition, Anixter was a contributing sponsor in Bernie’s “Birdies and Books” fundraising golf event. Bernie’s Book Bank is a nonprofit organization that provides new and gently used children’s books to school districts throughout Chicagoland. In 2019, the number of children’s books Bernie’s Book Bank had sourced, processed and distributed reached 15 million and they are currently on target to distribute 3.6 million books annually to 360,000 at-risk children.
KOHL CHILDREN’S MUSEUM Anixter encourages the next generation of scientists by sponsoring the Tinkering Tuesdays educational program at Kohl Children’s Museum in Glenview, Ill. Tinkering Tuesdays aim to get more children interested in the fields of science, technology, engineering and math through a variety of fun and educational activities. In addition to making a $10,000 sponsorship donation to the program, Anixter engineers work with the program’s directors to develop Tinkering Tuesday sessions geared toward exploring the world of engineering. HABITAT FOR HUMANITY In 2019, Anixter employees once again volunteered with Habitat for Humanity on a total of 12 build projects throughout Chicagoland. The approximately 115 Anixter volunteers hung drywall, installed flooring, built porches and performed a multitude of other tasks to build affordable homes for families in need. Anixter was also a sponsor of the Chicagoland Habitat Hero Award Dinner, donating $50,000 to the organization.
MISSION 500 Anixter is a continuing sponsor of Mission 500, a nonprofit organization that works closely with the security industry to serve the needs of children living in severe poverty across the U.S. In 2019, Anixter employees raised money and sponsored various fundraising events for Mission 500, including a 5K and softball game. JUNIOR ACHIEVEMENT In 2019, employees from Anixter’s headquarters participated in the Junior Achievement program, in which they met with local high school students to teach them the basics of the workforce, such as how to create a resume, apply for jobs and answer interview questions.
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CHARITABLE AND SOCIAL RESPONSIBILITY PROGRAMS NATIONAL MERIT SCHOLARSHIP In 2019, Anixter expanded its Anixter Cares offering under education with the National Merit Scholarship, which honored two deserving students—both children of Anixter employees— with college scholarships. The scholarships are renewable each year of the students’ four-year college program. Each year, the National Merit Scholarship Corporation partners with companies like Anixter to provide scholarships to approximately 7,500 young men and women who are entering college. There are more than 1.6 million students each year who meet the requirements to enter the competition for recognition and college scholarships. Winners are selected based on their abilities, skills and accomplishments.
ANIXTER CARES In 2019, donations generated through Anixter Cares included: ANIXTER EMPLOYEE CONTRIBUTIONS
+
ANIXTER CARES EMPLOYEE MATCHING CONTRIBUTIONS
MORE THAN
$19,700 MORE THAN
$19,700
+ ANIXTER CORPORATE DONATIONS
MORE THAN
TOTAL ANIXTER EMPLOYEE AND ANIXTER CARES IMPACT
MORE THAN
$80,500
$120,000
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CHARITABLE AND SOCIAL RESPONSIBILITY PROGRAMS
Diversity Anixter is committed to promoting participation of minority-, woman- and disabled-veteran-owned business enterprises (MWDVBE) in our distribution business. We will use reasonable efforts to provide opportunities to certified MWDVBEs through purchasing or reselling opportunities, mentor-protégé programs, teaming arrangements and subcontracting whenever practical. DIVERSITY PURCHASING
DIVERSITY SALES
• Within the U.S., Anixter spent over $830 million with more than 3,000 MWDVBEs in 2019
Through a combination of long-term and recently established partnerships with a vast array of diversity organizations located across the U.S., Anixter’s and our partners’ strengths are combined to collectively help our mutual customers achieve their diversity business engagement goals for both large projects and day-to-day operations. In 2019, Anixter sold more than $147 million in products to various strategic diversity partners.
• Anixter continued to help U.S. customers report on their indirect diversity purchases from Anixter by distributing electronic diversity purchasing reports each quarter. Anixter has been supporting customers with quarterly diversity purchasing reports since 1999 • As a General Services Administration (GSA) contract holder since 2000, Anixter continuously strives to attain annual small business subcontracting goals. The small business subcontracting initiative focuses on increasing subcontracting opportunities for disadvantaged businesses, HUBZone-certified businesses and MWDVBEs to receive maximum practical opportunities in federal government subcontract awards. The program seeks to ensure that domestic small businesses receive a fair and equitable opportunity to compete for and receive subcontracts.
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ANTI-CORRUPTION
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ANTI-CORRUPTION Anixter is proud of its reputation as a fair, honest and ethical company. All Anixter directors, officers, employees, suppliers and business partners are required to conduct business with the highest degree of honesty and integrity and in full compliance with applicable laws. These principles are set forth in company policies such as Anixter’s Global Business Ethics and Conduct Policy (Ethics Policy), Global Anti-Bribery & Corruption Policy (Anti-Bribery Policy), Supplier Code of Conduct and Business Partner Anti-Corruption Policy. As clearly stated in its policies, Anixter takes a zero-tolerance approach to bribery and other forms of corruption and is committed to acting professionally, fairly and with integrity in all business dealings and relationships. It upholds all laws countering bribery and corruption wherever it operates. No Anixter employee or anyone acting on Anixter’s behalf may promise, offer, give, authorize, request, agree to receive or receive, directly or indirectly, a bribe to or from anyone.
COMPONENTS OF ANIXTER’S GLOBAL ANTI•CORRUPTION PROGRAM Anixter promotes responsible business practices at every level of the company. It strives to conduct business ethically, honestly and in accordance with its Ethics Policy (anixter.com/ethics), and expects all employees and business partners to meet these high ethical standards. Countering bribery and corruption is one of Anixter’s standards and a primary focus area of its global compliance program. The anti-bribery and corruption program is comprised of the following ten components: • Policies • Oversight, autonomy and resources • Commitment from senior management • Third-party due diligence • Incentives and discipline • Training and communication • Confidential reporting and investigations • M&A diligence and integration • Risk assessment • Periodic testing and review.
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ANTI-CORRUPTION
ANTI-CORRUPTION
POLICIES In support of Anixter’s high ethical standards, its global compliance program provides guidance and training for Anixter employees worldwide on a variety of policies and topics, such as but not limited to, business ethics and conduct, anti-bribery and corruption, government contract compliance, fraud, conflicts of interest, prevention of workplace harassment and export compliance. The policies that reinforce Anixter’s zero tolerance of bribery and corruption include, but are not limited to, the Ethics Policy, Anti-Bribery Policy, Government Contracts Policy and Conflicts of Interest Policy. See “Relevant Policies” on page 41 for more information about these policies. Additionally, as part of Anixter’s anti-corruption program, the company has implemented a business partner compliance program (anixter.com/bpcompliance) that includes the Global Business Partner Anti-Corruption Policy (anixter.com/bppolicy) and a business partner due diligence screening process. Anixter has adopted a Supplier Code of Conduct available at anixter.com/suppliercode. This code incorporates the key Ten Principles of the United Nations Global Compact and specifies how Anixter expects its suppliers to conduct business. This code also emphasizes Anixter’s zero-tolerance approach to bribery and corruption. The Anti-Bribery Policy is an internal policy that applies to all Anixter employees worldwide. The Business Partner AntiCorruption Policy applies to Anixter’s suppliers, contractors, integrators, resellers, channel partners, consultants, professional advisers, joint venture partners, custom brokers, freight forwarders, sales agents and any other parties with whom Anixter does business (business partners). For a copy of Anixter’s Business Partner Anti-Corruption Policy, visit anixter. com/bppolicy. Anixter’s anti-corruption policies are designed to comply with anti-bribery and anti-corruption laws in the countries where Anixter operates or conducts business, including, but not limited to, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. No bribe of any kind may be authorized, offered, given, requested or accepted in the course of doing business for Anixter. Anixter’s policies also prohibit facilitation payments. Anixter’s zero-tolerance approach to bribery and corruption is not limited to government officials; it also extends to bribes involving commercial parties.
The Anti-Bribery Policy, Business Partner Anti-Corruption Policy, the Overview Presentation and Supplier Code of Conduct are available in 11 languages. All employees are familiar with the Blue Book, which drives the company’s culture by outlining Anixter’s core beliefs and guiding principles. Created over 50 years ago, the Blue Book continues to influence and shape Anixter’s overall culture. The Blue Book is frequently quoted in companywide trainings and internal communications. For a copy of the Blue Book, visit anixter.com/ bluebook. All new employees globally are made aware of the Ethics Policy, Anti-Bribery Policy, Conflicts of Interest Policy and the Blue Book during their onboarding process. They also receive the other policies if applicable to the employee’s position. OVERSIGHT, AUTONOMY AND RESOURCES The Audit Committee of the Anixter International Inc. Board of Directors oversees the global compliance program, including the anti-corruption. Anixter’s chief compliance officer, who reports directly to the company’s CEO, updates the Audit Committee quarterly on the company’s anti-corruption program and initiatives. Anixter’s internal audit department reports to the Audit Committee of the Board of Directors. It provides independent and objective advisory services designed to add value and improve Anixter’s operations. The department helps Anixter accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of enterprise-wide risk management, internal control systems and governance processes. The internal audit department, in collaboration with other key departments, also provides oversight and guidance related to applicable laws, regulations and company policies to foster a positive and ethical work environment for employees. Anixter’s Executive Compliance Committee (ECC) is led by the chief compliance officer and is comprised of the regional compliance officers and senior leaders from various departments within the company. The ECC administers the compliance program, oversees and assists in implementing the compliance program initiatives and monitors the effectiveness of the compliance program. The ECC meets at least twice a year and will hold additional meetings as needed.
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ANTI-CORRUPTION Regional compliance committees are responsible for identifying risk and compliance matters within their respective regions, and for overseeing the regional compliance initiatives. These committees are comprised of senior leaders from various departments within the company. The committees meet at least once a year and are led by regional compliance officers who are in-house regional attorneys. The regional compliance officers are also members of the Executive Compliance Committee. COMMITMENT FROM SENIOR MANAGEMENT Company policies, including the Ethics Policy and Anti-Bribery Policy, clearly state Anixter’s commitment to conducting business ethically and with integrity and include Anixter’s zero-tolerance approach to bribery and corruption. These are endorsed by our president and CEO, Bill Galvin, and chairman of the board, Sam Zell. Commitment to the company’s culture of ethics and integrity and compliance program is supported by Anixter managers, who include topics such as bribery, corruption, ethics and integrity in their leadership-driven discussions with their teams throughout the year. THIRD-PARTY DUE DILIGENCE Anixter expects its business partners to act professionally and ethically at all times in carrying out their services and contractual obligations to Anixter or on Anixter’s behalf to an Anixter customer or any other third party. Business partners must undergo a qualification and screening process if the business partner is (1) located in or doing business in a “highrisk country” identified by Anixter or (2) performing services for or on behalf of Anixter in one of the “high-risk categories” identified by Anixter, regardless of country. Red flags identified during this process are referred to a regional compliance officer for review and further investigation. Business partners that refuse to participate in the screening process or an investigation will not be approved to do business with Anixter.
TRAINING AND EDUCATION Employees are required to complete training explaining Anixter’s Anti-Bribery and Corruption Policy and other compliance program policies. All new hires receive these assignments, along with the “Blue Book - Living the Anixter Culture” module, upon beginning their employment with Anixter. Live training sessions and manager-led discussions covering compliance program policies and related topics are also conducted throughout the company. These sessions are tailored to the particular audience. The compliance program policies are posted in various locations on Anixter’s intranet site and are easily accessible by employees. News about and updates to the compliance program are communicated to employees via companywide newsletters and email blasts. To help business partners better understand Anixter’s zero-tolerance approach to bribery and corruption, they are encouraged to review the “Understanding Anixter’s Business Partner Anti-Corruption Policy” presentation available at anixter.com/bpoverview (the “Overview Presentation”). This presentation summarizes Anixter’s expectations of its business partners to comply with its zero-tolerance approach to bribery and corruption.
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ANTI-CORRUPTION CONFIDENTIAL REPORTING AND INVESTIGATIONS
RISK ASSESSMENT
Anixter’s employees, business partners and other third parties can ask questions or report possible ethics or bribery and corruption violations through various means, including Anixter’s Business Integrity Line, which is hosted by an independent third party. Where permitted by local laws, these reports can be made anonymously. Reports made at anixter.ethicspoint. com are managed and responded to by members of the legal, human resources and internal audit departments, as appropriate. Anixter does not tolerate any form of retaliation against employees who, in good faith, report a concern regarding illegal or unethical activities. Anixter’s Anti-Retaliation Policy and the Safe to Speak FAQs are available in 11 languages and posted on its intranet sites.
The internal audit department reviews business practices for anti-corruption risks during the audits they conduct throughout the year. Also, business partners that represent a greater risk, such as those in high-risk countries or high-risk categories identified by the company, are required to complete Anixter’s business partner qualification process. This qualification process includes due diligence screening. Business partners who are approved are continuously monitored by the company.
Anixter takes all reports of possible misconduct seriously. Anixter promptly, thoroughly and confidentially investigates all reports of misconduct and takes appropriate corrective action, which may include disciplinary action, dismissal or other penalties. All reports and investigations of misconduct are held in confidence and disclosed only to the extent necessary to effectively investigate and resolve the matter. M&A DILIGENCE AND INTEGRATION Prior to an acquisition, Anixter conducts a due diligence review that includes reviewing the targeted company’s anti-corruption compliance program and controls. Anixter also looks for prior anti-corruption issues or violations. Post-acquisition integration efforts include effectively communicating and implementing training on Anixter’s compliance program, including all policies and procedures.
PERIODIC TESTING AND REVIEW The anti-corruption program is monitored by a combination of audits, reviews, risk assessments and internal investigations. The internal audit, global shared services, finance and legal departments are engaged in these processes. An annual ethics questionnaire is distributed to all directors, officers, senior management and members of select departments and functions and is available in 11 languages. Any report of possible violations of the company’s compliance program raised in a questionnaire is promptly investigated. To further monitor the compliance program, Anixter distributes and analyzes a culture survey. This survey is issued every two years and was last conducted in 2019. All employees worldwide were invited to participate in the survey. Participation is voluntary and all responses are anonymous. The results of this survey were reported to the Audit Committee, Executive Compliance Committee and senior management.
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ANTI-CORRUPTION
RELEVANT POLICIES GLOBAL BUSINESS ETHICS AND CONDUCT POLICY • Reflects current industry best practices, emphasizes zero tolerance of bribery and restates commitment to anti-retaliation • Earliest version distributed in 1998; last revised in 2013 • Posted on intranet and external sites • Available in 11 languages • Distributed with training annually to all employees. GLOBAL ANTI-BRIBERY AND ANTI-CORRUPTION POLICY • Provides guidance on what bribery and corruption are and how to avoid them
GLOBAL TRAVEL AND ENTERTAINMENT POLICY • Emphasizes prohibition of entertainment and gifts to government personnel • Adopted in 1999; last revised in 2019 • Posted on intranet sites • Available in three languages • Distributed with training to all employees who travel and entertain on behalf of Anixter. GLOBAL CONFLICT OF INTEREST POLICY • Identifies the most common types of activities that may result in a conflict of interest and the disclosure and approval process for each type of activity • Adopted in 2014
• Revised in 2015; first adopted in 2012
• Posted on intranet sites
• Posted on intranet sites
• Available in 11 languages
• Available in 11 languages
• Distributed to all employees globally with targeted live training.
• Distributed with training to employees. GOVERNMENT CONTRACTS POLICY • Provides guidance for meeting ethical and legal obligations as a supplier to U.S. federal, state and local governments • Adopted in 2011 • Posted on intranet sites • Available in English • Distributed with training to employees involved with U.S. government contracting in the U.S., United Arab Emirates, Japan and Germany.
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ABOUT ANIXTER CORPORATE SNAPSHOT
EMEA ENTERED REGION
1972
YEAR FOUNDED
1957
NORTH AMERICA
ENTERED REGION
1991 APAC ENTERED REGION
1990 CALA ANIXTER PRESENCE GLOBAL REACH. LOCAL ADVANTAGE. With Anixter, you get a true local partner around the world. No other distributor of our kind can claim an in-country presence in approximately 50 countries and in over 300 cities. We do business in more than 35 currencies and 30 languages, which means we are uniquely positioned to help facilitate your project in the local environment, reduce risks and keep costs down.
About Anixter: anixter.com/aboutus Legal Statement: anixter.com/legalstatement 20G0018GL © 2020 Anixter Inc. • 02/20
FOUNDED
1957 APPROXIMATE A LY L
130,000 CUSTOMERS
OVER
9,300
EMPLOYEES O
OVER
600,000 PRODUCTS
OVER
APPROXIMATE A LY L
IN SALES
COUNTRIES
OVER
FORTUNE
$8.4 BILLION
$1 BILLION INVENTORY
50
500 COMPANY P
IN OVER
300
CITIES
STOCK SYMBOL
AXE
Anixter International Inc. 2301 Patriot Boulevard Glenview, Illinois 60026 1.224.521.8000
1.800.ANIXTER | anixter.com
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